October 2003 Issue

Trade Secrets

By Bob Cerullo

Putting out 'forest fires' in a busy shop can divert your attention from something even more important: the long-term success of your business.

I'm an incurable automotive repair shop watcher. I visit shops whenever I travel, often just to chat and look around. I try to figure out why one particular shop is very successful while another may be barely making it. A few months ago I visited Import Autohaus, a shop located in a giant mall in Midlothian, Virginia. It was, to say the least, a real eye-opener.

The first thing that struck me walking up to the shop was the crisp, clean look of the place. There were no dumpsters in sight, no pile of old tires or wrecked cars out front. The awning bearing the distinctive Import Autohaus logo was clean and attractive. Customers walk through a glass entry door into a bright, airy and air conditioned combination waiting room/front desk. The restrooms were immaculate. Behind the front desk was the clean-cut, uniformed service manager, Steve Mayton, who cheerfully greeted me.

I saw that Mayton is a knowledgeable guy. I was impressed with the trouble he took to explain to customers what work was needed and how much it would cost. While I was there, Mayton handled the routine and the problematical with equal aplomb.

When things quieted down, Mayton took me on a tour of the shop. I've rarely seen a shop as clean as Import Autohaus. The building has eight bays-four in front and four in the rear. No dust-covered parted-out cars in this place. Every bay was a working bay, with the technicians handling all sorts of jobs, large and small.

Later, Mayton suggested I talk with Frank Driggs, one of the Import Autohaus principals, who was at their shop in Richmond. Import Autohaus also has a third location in Glen Allen, Virginia. Driggs told me the company was started in 1969 by a man named Wilhelm Kallenberger, who worked in the Mercedes factory in Stuttgart before coming to the U.S. Working his way around the country as a kind of troubleshooter in Studebaker/Mercedes dealerships, he eventually settled in Richmond. He later sold the business. Subsequently, Driggs joined in a partnership with Andy Neff and Mark Cooke to operate Import Autohaus in Richmond.

In the beginning they worked on Mercedes vehicles exclusively. Then they decided to work on BMWs as well, and in 1988 opened a second store. But before they did, they did some homework to determine which area had the most Mercedes and BMW owners. At the new location they worked on only German cars. In 1993, they opened another store in the Innsbrook area of Glen Allen. All of their stores are about 8 miles apart and are planned to be in the best places to attract the customers targeted. Business prospered and eventually Import Autohaus began doing repairs on most imports.

I asked Driggs what he thought was the most important factor in their success. He attributes it mainly to the fact that he and his partner Andy Neff are skilled technicians who work hands on when the need arises. (Mark Cooke does not work in the shop.) Driggs likes to refer to himself and Neff as forest rangers, because they're always on the lookout for hot spots and ready to jump in to put out fires.

Driggs and Neff are in the shops every day working alongside their techs. They strive to make them nice places to work. In fact, they just completed air conditioning two of the shops and are in the process of doing the third.

Driggs also attributes much of their success to what he calls his shuttle parts setup. They keep about $150,000 worth of parts in one location and about $30,000 in each of the others. A driver makes a loop every hour or so to each shop. This way, if a part is needed at one location, it can be quickly pulled out of stock by the parts manager and shuttled over. And if a part needs to be picked up from a local dealership or parts jobber, the shuttle driver can pick up faster than the dealer or jobber can deliver.

The shuttle driver has another job, as well. While the technicians have all the tools and equipment they need on a day-to-day basis, there are specialty tools that are costly to buy and used infrequently-say, once every few months. These are stored in the Tool Dept. at one of the locations. It's the tool manager's job to keep track of them and maintain a tool catalog for each shop. When a tech needs one of these tools, he simply thumbs through the catalog and orders it to be sent on the shuttle.

Driggs has a philosophy which he says dates back to the early days when he and Neff were Import Autohaus employees: "If you fix a car and you fix it right, you can make money on that person all your life. On the other hand, if you gouge someone, he'll talk to everyone in the world and you can make money only one time."

Service managers are instructed to avoid arguments with customers at all costs. For example, if a customer is "sure" that when Import Autohaus changed the oil a week before, they somehow caused a headlight to burn out, that headlight will be replaced at no charge.

Import Autohaus also has a goodwill fund. For example, if a customer comes in with a burnt-out taillight bulb, they never charge him to replace the bulb. In addition, to enhance its image, the company maintains its own website: www.importautohaus.com.

Import Autohaus tries to treat its employees well, with a liberal vacation policy, paid holidays, a 401(k) plan and medical coverage. Employees also are encouraged to take specialized training to develop their skills. Some courses are run on weekends at Import Autohaus. If an employee successfully completes the course, the company pays the full cost. Import Autohaus is willing to grow its own technicians. They'll bring along a technician with limited experience provided they feel he has the potential-and willingness-to be a top tech.

One night every month, all of the Import Autohaus managers join Frank Driggs and Andy Neff for a meeting and dinner at a local restaurant. The idea is to discuss problems and policies in a relaxed atmosphere and to keep driving home the point that they need to be constantly vigilant of how management expects them to deal with customers and technicians.

The Trade Secret that Import Autohaus learned a long time ago is to know what kind of repairs you want to do and where you want to do them. Know your customers and do your best to keep them and your techs happy. It's also important to keep your shop looking clean and inviting to customers, so they feel at ease from the first moment they enter.

Import Autohaus is in it for the long haul, and they never allow themselves or their employees to lose sight of the fact that repeat business from happy customers is what makes it all happen. You'd do well to take your cue from them.